Key facts
- Tax experts identify a potential 'double taxation' issue in Trump's proposed tax bill.
- The issue specifically affects income held in trusts for top earners.
- Guidance from Congress' tax policy staff indicates the potential for double taxation.
Tax experts are raising concerns about a potential 'double taxation' issue within Donald Trump's proposed tax legislation, often referred to as his 'big beautiful bill.' According to a new guide released by Congress' tax policy staff, income generated within trusts could face taxation twice under the proposed framework. This particular concern appears to target high-earning individuals who utilize trusts as part of their tax planning strategies. The guidance suggests that the structure of the bill might inadvertently lead to income being taxed at both the trust level and again when distributed to beneficiaries, creating an unintended financial burden for top earners.